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BOK Financial Q3 Earnings Top Estimates as NII & Fee Income Rise Y/Y
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Key Takeaways
BOK Financial's Q3 EPS of $2.22 beat estimates and rose 1.8% year over year.
Higher net interest income and fee revenues drove stronger quarterly results for BOK Financial.
Operating expenses increased 8.4%, while loan and deposit balances posted sequential gains.
BOK Financial Corporation's(BOKF - Free Report) third-quarter 2025 earnings of $2.22 per share surpassed the Zacks Consensus Estimate of $2.10. The bottom line increased 1.8% from the prior-year quarter.
BOKF’s results benefited from higher net interest income (NII) and total fees and commissions. An increase in loans and deposit balances was another positive. However, the increase in operating expenses was a major undermining factor.
The net income attributable to shareholders was $140.9 million, which rose slightly year over year.
BOKF’s Q3 Revenues & Expenses Rise
Quarterly net revenues of $548.3 million (net interest income and total other operating revenues) rose 6.2% year over year. The top line surpassed the Zacks Consensus Estimate of $533.7 million.
Net interest income was $337.6 million, up 9.6% year over year. The net interest margin expanded 23 basis points to 2.91%.
Total fees and commissions were $204.4 million, up nearly 1% year over year. The upside was driven by higher fiduciary and asset management revenues, transaction card revenues, deposit service charges and fees, and mortgage banking revenues.
Total other operating expenses were $369.8 million, up 8.4% year over year. This rise was mainly driven by higher personnel expenses.
The efficiency ratio rose to 66.66% from the prior year’s 65.11%. A rise in the efficiency ratio indicates a deterioration in profitability.
BOK Financial’s Loan Balance & Deposits Rise
As of Sept. 30, 2025, total loans were $24.8 billion, up 2.3% from the prior quarter. The increase was primarily due to growth in commercial loans, commercial real estate loans and loans to individuals.
Total deposits slightly rose on a sequential basis to $38.5 billion. The increase was driven by higher interest-bearing transaction accounts and time deposits.
BOKF Credit Quality: Mixed Bag
Non-performing assets were $74 million or 0.30% of outstanding loans and repossessed assets, as of Sept. 30, 2025, which decreased from $87 million or 0.36% in the prior-year quarter.
Provisions for credit losses remained stable at $2 million from the prior-year quarter.
The company recorded net charge-offs of $3.6 million, compared with net recoveries of $54 thousand in the year-ago quarter.
The allowance for loan losses was 1.12% of outstanding loans as of Sept. 30, 2025, which declined 7 bps from the year-ago quarter.
BOKF’s Capital Ratios Improve & Profitability Ratios Decline in Q3
As of Sept. 30, 2025, the common equity Tier 1 capital ratio was 13.60%, up from 12.73% a year earlier. The tier 1 capital ratio and total capital ratio were 13.61% and 14.48%, respectively, compared with 12.74% and 13.91%, as of Sept. 30, 2024.
At the end of the third quarter, return on average equity was 9.38%, down from the year-earlier quarter’s 10.22%. Return on average assets was 1.08%, down from 1.09% a year ago.
BOK Financial’s Share Repurchase Update
During the reported quarter, BOK Financial repurchased 365,547 shares at an average price of $111 per share.
Our View on BOK Financial
BOK Financial’s higher net interest income and solid loan balances continue to support overall performance. The company’s strong capital levels provide stability. However, rising operating expenses remain a near-term concern.
BOK Financial Corporation Price, Consensus and EPS Surprise
First Horizon Corporation’s (FHN - Free Report) third-quarter 2025 adjusted earnings per share (excluding notable items) of 51 cents surpassed the Zacks Consensus Estimate of 45 cents. This compares favorably with 42 cents in the year-ago quarter.
FHN’s results benefited from a rise in NII and non-interest income, along with provision benefits. However, a decline in loan and deposit balances acted as a headwind.
Synovus Financial Corp.'s (SNV - Free Report) third-quarter 2025 adjusted earnings per share of $1.46 surpassed the Zacks Consensus Estimate of $1.36. This compares favorably with earnings of $1.23 per share a year ago.
SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.
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BOK Financial Q3 Earnings Top Estimates as NII & Fee Income Rise Y/Y
Key Takeaways
BOK Financial Corporation's (BOKF - Free Report) third-quarter 2025 earnings of $2.22 per share surpassed the Zacks Consensus Estimate of $2.10. The bottom line increased 1.8% from the prior-year quarter.
BOKF’s results benefited from higher net interest income (NII) and total fees and commissions. An increase in loans and deposit balances was another positive. However, the increase in operating expenses was a major undermining factor.
The net income attributable to shareholders was $140.9 million, which rose slightly year over year.
BOKF’s Q3 Revenues & Expenses Rise
Quarterly net revenues of $548.3 million (net interest income and total other operating revenues) rose 6.2% year over year. The top line surpassed the Zacks Consensus Estimate of $533.7 million.
Net interest income was $337.6 million, up 9.6% year over year. The net interest margin expanded 23 basis points to 2.91%.
Total fees and commissions were $204.4 million, up nearly 1% year over year. The upside was driven by higher fiduciary and asset management revenues, transaction card revenues, deposit service charges and fees, and mortgage banking revenues.
Total other operating expenses were $369.8 million, up 8.4% year over year. This rise was mainly driven by higher personnel expenses.
The efficiency ratio rose to 66.66% from the prior year’s 65.11%. A rise in the efficiency ratio indicates a deterioration in profitability.
BOK Financial’s Loan Balance & Deposits Rise
As of Sept. 30, 2025, total loans were $24.8 billion, up 2.3% from the prior quarter. The increase was primarily due to growth in commercial loans, commercial real estate loans and loans to individuals.
Total deposits slightly rose on a sequential basis to $38.5 billion. The increase was driven by higher interest-bearing transaction accounts and time deposits.
BOKF Credit Quality: Mixed Bag
Non-performing assets were $74 million or 0.30% of outstanding loans and repossessed assets, as of Sept. 30, 2025, which decreased from $87 million or 0.36% in the prior-year quarter.
Provisions for credit losses remained stable at $2 million from the prior-year quarter.
The company recorded net charge-offs of $3.6 million, compared with net recoveries of $54 thousand in the year-ago quarter.
The allowance for loan losses was 1.12% of outstanding loans as of Sept. 30, 2025, which declined 7 bps from the year-ago quarter.
BOKF’s Capital Ratios Improve & Profitability Ratios Decline in Q3
As of Sept. 30, 2025, the common equity Tier 1 capital ratio was 13.60%, up from 12.73% a year earlier. The tier 1 capital ratio and total capital ratio were 13.61% and 14.48%, respectively, compared with 12.74% and 13.91%, as of Sept. 30, 2024.
At the end of the third quarter, return on average equity was 9.38%, down from the year-earlier quarter’s 10.22%. Return on average assets was 1.08%, down from 1.09% a year ago.
BOK Financial’s Share Repurchase Update
During the reported quarter, BOK Financial repurchased 365,547 shares at an average price of $111 per share.
Our View on BOK Financial
BOK Financial’s higher net interest income and solid loan balances continue to support overall performance. The company’s strong capital levels provide stability. However, rising operating expenses remain a near-term concern.
BOK Financial Corporation Price, Consensus and EPS Surprise
BOK Financial Corporation price-consensus-eps-surprise-chart | BOK Financial Corporation Quote
Currently, BOK Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
First Horizon Corporation’s (FHN - Free Report) third-quarter 2025 adjusted earnings per share (excluding notable items) of 51 cents surpassed the Zacks Consensus Estimate of 45 cents. This compares favorably with 42 cents in the year-ago quarter.
FHN’s results benefited from a rise in NII and non-interest income, along with provision benefits. However, a decline in loan and deposit balances acted as a headwind.
Synovus Financial Corp.'s (SNV - Free Report) third-quarter 2025 adjusted earnings per share of $1.46 surpassed the Zacks Consensus Estimate of $1.36. This compares favorably with earnings of $1.23 per share a year ago.
SNV’s results benefited from strong year-over-year growth in NII and non-interest revenues, along with a fall in provisions for credit losses. Also, improving loan balances was a tailwind. However, an increase in expenses was a major headwind.